TUI will launch a capital increase with the aim of repaying Covid-19 pandemic aid it received from the German government, the German tourism group said today.

TUI aims to raise gross proceeds of €1.8 billion via the offering of 328,910,448 new shares at a subscription ratio of eight new shares for three existing ones, at a price of €5.55 per share.

The company received state aid of €4.3 billion during the coronavirus crisis and still has to repay €2.6 billion, including a silent participation and an option bond, which are now being repaid.

The aid includes a €2.1 billion credit line from state bank KfW, which TUI intends to reduce to €1.1 billion.